Results show the success of tax district

Wednesday

Mar 27, 2013 at 2:32 PM

Rarely do taxpayers ask to pay more in taxes. But that's what downtown business owners in Lexington did 20 years ago when the city council created the Municipal Service District. Business owners in the district pay an extra 20 cents per $100 property valuation. The money goes to fund Uptown Lexington, which promotes the uptown business district. It may be confusing whether to call it downtown or uptown, but no matter which name one prefers, the results are impressive.

Rarely do taxpayers ask to pay more in taxes. But that's what downtown business owners in Lexington did 20 years ago when the city council created the Municipal Service District. Business owners in the district pay an extra 20 cents per $100 property valuation. The money goes to fund Uptown Lexington, which promotes the uptown business district. It may be confusing whether to call it downtown or uptown, but no matter which name one prefers, the results are impressive.The city council renewed the MSD for the fourth time Monday night, which shows city leaders see its benefits. Uptown Lexington offered letters from downtown property owners touting the advantages of the MSD as well. Those business owners see a vibrant downtown and the improvements that have taken place during the past 20 years.It can be tempting to see the glass as half empty in Lexington due to all the manufacturing losses over the past couple of decades. But pay attention when driving downtown (and enjoying those newly allowed left-hand turns at the Square). You'll see a thriving central business district that's almost devoid of empty storefronts. Long-time and well-known anchors such as The Candy Factory, Conrad & Hinkle, the Army Navy Store and Lanier's Hardware remain, but many new businesses have opened as well, including the popular High Rock Outfitters. The appearance of most also pleases the eye, in large part thanks to $221,000 in façade grants from Uptown Lexington. Utility lines are buried, and trees line Main Street.Here are some other noteworthy statistics Tim Ragan, the president of Uptown Lexington, shared with the council: $507,000 in private investment from the façade grants; 117 façades improved along with 60 buildings; $31.6 million in private and public investment in the MSD; an increase in property value from $21 million to $50 million; and, perhaps most significantly, 87 new businesses and 262 jobs created.The business owners who initially advocated for and supported the district deserve credit for their foresight at the potential of downtown. History proves they made the right choice. Perhaps other governmental bodies should also consider whether residents (and voters) would support tax increases. In this partisan time in which we live, that might seem like heresy, but perhaps Davidson County residents would favor a small property tax hike that would go toward school construction or the creation of an industrial park that bring new jobs. Sometimes paying a little bit more now reaps great rewards down the road.That has certainly been the case with the Municipal Service District. Yes, the extra taxes go toward a very specific purpose, and the number of affected property owners is relatively small. But reasonable and targeted tax hikes don't have to be viewed as a nonstarter.